China's accession to the World Trade Organization (WTO) will be good for China, good for the European Union (EU) and good for the WTO as an institution itself, said Pascal Lamy, EU trade commissioner, in Hong Kong Monday.

Addressing a luncheon hosted by the European Chamber of Commerce in Hong Kong, Lamy said China's accession to the WTO is now on the verge of concluding the final steps and the EU will be able to take the last few hurdles and reach the finish line at the next session in Geneva, possibly in March.

"This is the EU's objective -- and we will continue to work hard on it," he said. "It would mean China's entry by the summer."

Lamy, who has been serving as the trade commissioner of the EU since September 1999, is now on a working visit to Hong Kong. He is expected to meet Tung Chee Hwa, chief executive of the Hong Kong Special Administrative Region (SAR), and a number of senior officials and prominent business leaders.

Lamy said China will benefit from the WTO accession, because the liberalization process will have a tremendous impact on its economic reform and development.

"China's accession is good for the EU because we have secured a high standard of commitments by China to open its economy to foreign imports, investors and businesses," he said.

The tariff average will be low, quotas will be phased out quickly, service providers from virtually all sectors will have better market access, and protection for intellectual property rights will be guaranteed in law, he explained.

He noted that the companies present in Hong Kong will be the ones best placed to reap the benefits of China's accession, because of their unique understanding of the Chinese market and their already very close ties with the Chinese mainland business community.

In referring to the benefit of China's accession to the WTO, Lamy said the organization takes a huge step forward to become truly global and thus to fulfill its original vocation, and he believes that China will emerge as a very positive and significant player.

Increased trade has been a major contributor to the country's phenomenal growth rates since the open door policy was launched in 1978, said Lamy.

"So the existing members of the WTO should be positive, too + they should welcome China within the organization and encourage her to participate actively in future multilateral work," he added.

(Xinhua 02/19/2001)